What is a user fee?

Prepare for the CGFM Exam 1 with flashcards and multiple-choice questions. Each question comes with hints and explanations to help you understand. Ace your exam by studying the key concepts of the governmental environment!

A user fee is defined as a charge levied for the access or use of a particular good or service that specifically benefits the individual or organization that pays the fee. This concept is designed to ensure that those who directly utilize a service contribute to the costs associated with providing it. For example, a toll for using a public road or a fee for admission to a public park are both instances of user fees. The idea is that the fee reflects the cost of the service or facility directly used by the payer, aligning the funding with the consumption of services rather than spreading the cost across the general population.

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